GST Rates in India

The Indian Government has implemented GST or Goods and Services Tax from 1st July, 2017. GST is the biggest tax reform in the history of India. For a bulk of supplies of goods, the tax incidence permitted by the GST Council is much lesser than the current combined indirect tax rates levied by the Centre and States, the finance ministry said in a press release-June 15. The latest indirect tax regime, GST, will include numerous local and central taxes including excise duty, service tax, VAT and octroi. The government is set to roll out GST or goods and services tax from July 1. India is moving towards execution of GST (Goods and Service Tax). GST is considered one of the main indirect tax reforms in which all the taxes like excise tax, service tax, VAT, etc. would be replaced with one tax. This in turn would help in easiness of doing business. Despite the fact that the government says that GST would bring prices down, we give a broad summary on how it would impact a household budget.

Implications of GST

The Goods and Services tax or normally referred to as the GST will substitute the indirect taxes levied by the Central and State Governments and make available for a single and streamlined process. GST eliminates the cascading effect of taxes which is very widespread in our economy. The tax will be put into practice at every step of value creation. GST is being considered as the game changer for India’s economy and is being labeled as the biggest change in the Constitution ever since India’s independence. It presents India as an integrated market to business owners and also aims at enabling a lot of black money back into the mainstream economy as it will be very complicated for black money owners to contribute anywhere in the value chain with the GST devoid of accounting for all other transactions.

Majority of the goods and services fall under the 18% or 12% tax bracket. You can find GST rates for all goods and services through IndiaFilings.com HSN Code, SAC Code and GST Rate Finder.

GST Rate for Services

Education, Healthcare and transport of goods which were subjected to exemption from service tax persist to be exempted in GST. However the majority services like telecom, business class air travel, financial services such as banking and insurance, telecom, information technology would increase from 15% to 18%. Eating out in AC/Non-AC restaurants and watching movies in theaters may perhaps become to some extent cheaper but five star hotels would become more expensive as its taxed at 28%.

With GST, most cars will be taxed at lower rates. Nevertheless the main beneficiaries would be expensive cars where the tax would decrease. If executed well this might turn out to be a major tax reform.

GST Invoice

GST registration has been mandated for businesses having more than Rs.20 lakhs turnover in most states. These businesses will have to give a GST tax invoice in accordance with Government regulations. In the tax invoice, customers can see the different tax rates charged by the Government and the amount paid by the Customer. Its mandatory that the above information be provided in all invoices given by businesses.